America has been making steel from iron ore the same way for hundreds of years. Unfortunately, it hasn’t been making enough of it. Today the US is the world’s largest steel importer, relying on other countries to produce a material that serves as the backbone of our society, according to a MIT release.
That’s not to say the US is alone: Globally, most steel today is made in enormous, multi-billion-dollar plants using a multi-step, coal-based process that hasn’t changed much in 300 years.
Now Hertha Metals, founded by CEO Laureen Meroueh, is scaling up a steel production system that uses a continuous electric arc furnace to produce molten steel from iron ore of any grade in a single step. The process, which does away with coal, is powered by natural gas and electricity and can also run on clean hydrogen. It also eliminates the need for coking and sintering plants, along with other dangerous and expensive components of traditional systems. As a result, the company says its process uses 30 per cent less energy and costs less to operate than conventional steel mills in America.

“The real headline is the fact that we can make steel from iron ore more cost-competitive by 25 per cent in the United States, while also reducing emissions.” Meroueh says. “The United States hasn’t been competitive in steelmaking in decades. Now we’re enabling that.”
Since late 2024, Hertha has been operating a 1-metric-ton-per-day pilot plant at its first production facility outside Houston, Texas. The company calls it the world’s largest demonstration of a single-step steelmaking process. This year, the company will begin construction of a plant that will be able to produce 10 000 tons of steel each year. That plant, which Hertha expects to reach full production capacity at the end 2027, will also produce high-purity iron for the magnet industry, helping America onshore another critical material.
“By importing so much of our pig iron and steel, we are completely reliant on global trade mechanisms and geopolitics remaining the way they are today for us to continue making the materials that are critical for our infrastructure, our defence systems, and our energy systems,” Meroueh says. “Steel is the most foundational material to our society. It is simply irreplaceable.”
Globally, most steel today is made by combining iron ore with coke (from coal) and limestone in a blast furnace to make molten iron. That pig iron is then sent to another furnace to burn off excess carbon and impurities. Alloying elements are then added, and the steel is sent for casting and finishing, requiring additional machinery.
The US makes most of its steel from recycled scrap metal, but it still must import iron made from a blast furnace to reach useful grades of steel.
“The United States has a massive need to make steel from iron ore, not just scrap, so we can stop relying on importing so much,” Meroueh explains. “We only have about 11 operational blast furnaces in the US, so we end up importing about 90 per cent of the pig iron needed to feed into domestic scrap steel furnaces.”
For further details visit: https://news.mit.edu/2026/new-way-make-steel-could-reduce-americas-reliance-imports-0213
